What's funny to me about this whole quiz is that high school students might know more of the answers if it wasn't for "reforms" like No Child Left Behind, which stresses test scores (not content knowledge) and only in English and Math. Also, state standards don't really allow for too much teaching of pre-Civil War history -- they figure kids should have learned this in the 8th grade (at least in my state).

I imagine this question was intended primarily to test that people knew the difference. But if that's the case, they should have actually asked a question about debts and deficits, I think. (In any case, the most annoying thing about it to me is the misleading implication that government can raise money only through taxes and therefore spending must be limited unless you want your taxes to go up -- Oh noes!)

27) Free markets typically secure more economic prosperity than government’s centralized planning because: A. the price system utilizes more local knowledge of means and ends B. markets rely upon coercion, whereas government relies upon voluntary compliance with the law C. more tax revenue can be generated from free enterprise D. property rights and contracts are best enforced by the market system E. government planners are too cautious in spending taxpayers’ money

There's no inherent reason that A is true, but neoclassical economics accepts it as axiomatic. Also, as a practical matter, the price system also fails sometimes. I thought E was at least as close to being true (if more ridiculously laden with free market dogma). A huge reason capitalist economies have experienced such tremendous expansion is because the profit motive spurs capital investment beyond what is required to address human need.

in any case, e seem very weak answer indeed. at least, there no dogma associated with it.

what your problem with b? what your other neat-choice, e?--as, presumably, socialist critique of government role in capitalism?

25) Free enterprise or capitalism exists insofar as: A. experts managing the nation’s commerce are appointed by elected officials B. individual citizens create, exchange, and control goods and resources C. charity, philanthropy, and volunteering decrease D. demand and supply are decided through majority vote E. government implements policies that favor businesses over consumers

I answered B because I knew that it was the credited response. Nonetheless, it's not very accurate in the context of modern capitalism which has very little to do with "individual citizens" creating and controlling goods and resources. Perhaps if it specified "corporate citizens."

I think E is just as valid: modern capitalism exists only to the extent that government policies favor businesses. If they favored consumers, we would have a much more tightly regulated economy.

asto e, not government intrerference of any kind essentially disruption of market? (julie not say intervention necessarily bad, just disruption of "free market forces"--assuming, julie guess, there such thing in practice.)

What's funny to me about this whole quiz is that high school students might know more of the answers if it wasn't for "reforms" like No Child Left Behind, which stresses test scores (not content knowledge) and only in English and Math. Also, state standards don't really allow for too much teaching of pre-Civil War history -- they figure kids should have learned this in the 8th grade (at least in my state).